US oil and gas supermajor Chevron is the major LNG producer in WA with its Gorgon and Wheatstone LNG projects and a share in the North West Shelf project.
Chevron intends to have cracked propane vessels fixed and Gorgon LNG back in full production by September as it awaits inspection by the safety regulator.
Chevron's 5-month process to trim its Australian workforce twice as hard as its global cuts will now start the musical chairs of allocating spots in the leaner organisation.
The safety and economic stakes for Gorgon LNG are high as WA Government inspectors soon head to Barrow Island to check on Chevron's cracked pressure vessels.
Safety regulators knew nothing of cracked pressure vessels at Chevron's Gorgon LNG plant until alerted by media reports and now plan to inspect the equipment themselves.
Thousands of cracks raise questions about the safety of the Gorgon LNG plant and operator Chevron will decide to shutdown or maintain revenue, with the safety regulator on the sidelines.
Peter Coleman's challenges: an ageing plant, high cost gas, partner churn and global forces making the LNG game tougher than anyone envisaged a few years ago.
Chevron has been denied a two-year free pass on Gorgon greenhouse gas emissions by the WA Government that could cost it more than $80 million, and there may be a future bill for Wheatstone as well.
WA LNG producers Woodside and Chevron, beset by low prices and COVID-19 work restrictions, are maintaining dividends to shareholders and gas to customers as they shed workers, with unions describing Woodside’s actions as “brutal, cold, and unnecessary.”
Chevron boss Mike Wirth is not distracted by renewables as he pushes for more and lower cost production and looks to move gas through Woodside's Scarborough project.
Chevron is preparing to shed about 400 employees from its WA business, just months after approving a new construction project and backing an LNG jobs initiative.
Chevron has paid the Australian Taxation Office $US654 million ($866 million) under a partial settlement of its dispute with the tax office over intercompany loans and slashed the interest rate it charged its Australian subsidiary.
